The Velodrome decentralized exchange (DEX) is gearing up for a significant upgrade on June 15th, intending to enhance the user experience and security while introducing a range of new features. While this move undoubtedly signals growth and progress for the platform, its native token VELO is facing recent price drops, declining about 8% in the past 24 hours to $0.088 at the time of writing.
As the largest DEX on the Optimism layer 2 network, Velodrome aims to keep up with the rapidly evolving crypto landscape by implementing a complete software overhaul. The redesign showcases an improved smart-contract architecture, making their system simpler and more effective. However, with all the buzz surrounding these enhancements, the market performance of their native token VELO paints a different picture, leaving investors and enthusiasts in a perplexing state.
The second version of Velodrome is set to introduce a number of appealing features. For instance, a fully rebuilt frontend will enhance the overall usability of the platform. Additionally, users will see customizable pool fees which allow for dynamic voting rewards, and concentrated liquidity pools designed to optimize trading and liquidity management. Despite these promising features, the observable decrease in VELO’s price leaves room for skepticism around the success of this upcoming upgrade.
Furthermore, Velodrome’s total value locked currently stands at more than $230 million, experiencing a roughly 4% decrease in the past week, according to DefiLlama. With these less-than-ideal market performances, it begs the question of whether the technological advancements for Velodrome’s platform would translate into a successful outcome right away, or if the impact on VELO’s price may take some time to recover.
On the bright side, a blog post detailing the upcoming changes states that this upgrade will provide “additional fuel to Velodrome’s flywheel through increased fee capture and setting a new standard for low-slippage and liquidity management.” This suggests that the long-term outlook for Velodrome and its token VELO could be positive, even if these advancements do not have an immediate effect on the token’s value.
Ultimately, Velodrome’s upcoming upgrade highlights both the importance of continuous innovation within the blockchain and crypto industries, as well as the unpredictable nature of markets. While the immediate success of the platform’s redesign remains uncertain, the industry as a whole continues to march onwards into a future marked by rapid technological evolution. Those interested in observing the outcome of the Velodrome upgrade should closely monitor VELO’s price fluctuations and consider the long-term potential of the platform.
Source: Coindesk
